Prepared by MERRILL CORPORATION

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Supplemental Information
(Unaudited)

September 30, 2001

Corporate Office Properties Trust

Index to Supplemental Information (Unaudited)

September 30, 2001

		Page
Highlights and Discussion
	Reporting Period Highlights—Third Quarter 2001	1
	Subsequent Events	2
Financial Statements
	Quarterly Selected Financial Summary Data	3
	Quarterly Consolidated Balance Sheets	4
	Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)	5
	Quarterly Consolidated Statements of Operations and FFO per Diluted Share	6
	Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues	7
Selected Financial Analyses
	Quarterly Equity Analysis	8
	Quarterly Valuation Analysis	9
	Quarterly Debt Analysis	10
	Quarterly Operating Ratios	11
	Quarterly Dividend Analysis	12
	Investor Composition and Analyst Coverage	13
	Debt Maturity Schedule—September 30, 2001	14
Portfolio Summary
	Property Summary by Region—September 30, 2001	15
	Property Occupancy Rates by Region by Quarter	18
	Top Twenty Office Tenants as of September 30, 2001	19
	Total Rental Revenue and Net Operating Income by Geographic Region by Quarter	20
	Same Office Property Cash and GAAP Net Operating Income by Quarter	21
	Office Lease Expiration Analysis by Year	22
	Year to Date and Quarterly Office Renewal Analysis	23
	Acquisition and Disposition Summary as of September 30, 2001	25
	Development Summary as of September 30, 2001	26

To Members of the Investment Community:

We prepared this supplemental information package to provide you with additional detail on our properties and operations. The information in this package is unaudited, filed with the Securities and Exchange Commission and should be read in conjunction with our quarterly and annual reports. If you have any questions or comments, please contact Ms. Sara L. Grootwassink, Vice President, Finance and Investor Relations at (410) 992-7324 or sara.grootwassink@copt.com.

Reporting Period Highlights—Third Quarter 2001

Financial Results

•: Reported FFO—diluted of $11,034,000 or $.33 per share/unit for the third quarter of 2001 as compared to $9,550,000 or $.30 per share/unit for the comparable 2000 period, representing an increase of 10.0% per share/unit. FFO—diluted increased $1,484,000 or 15.5%, over the comparable 2000 period.
•: Reported AFFO—diluted of $9,106,000 or $.27 per share/unit for the third quarter of 2001 as compared to $6,691,000 or $.23 per share/unit for the comparable 2000 period, representing an increase of 17.4% per share/unit.
•: For the nine months ended September 30, 2001, reported FFO—diluted of $31,752,000 or $.95 per share/unit as compared to $27,700,000 or $.86 per share/unit for the same nine month period in 2000, representing an increase of 10.5% per share/unit. Similarly, for the nine months ended September 30, 2001, reported AFFO—diluted of $26,049,000 or $.78 per share/unit as compared to $20,658,000 or $.69 per share/unit for the same nine month period in 2000, representing an increase of 13.0% per share/unit.
•: Our diluted FFO payout ratio for the nine months ended September 30, 2001 improved to 65.0% as compared to 67.3% for the comparable period in 2000.

Financing and Capital Transactions

•: In September 2001, we issued 1,425,000 Series F cumulative redeemable preferred shares with a liquidation value of $25.00 per share, raising $35,625,000 in gross proceeds. These Series F preferred shares have a 9.875% coupon and can be redeemed at par at our option subsequent to October 14, 2006. Net proceeds were primarily used to pay down our Deutsche Bank revolving credit facility.
•: We increased our quarterly common dividend by 5.0% from $.20 per share to $.21 per share.
•: In connection with our 3^rd quarter acquisitions, we issued 310,342 common units valued at $10.50 per unit ($3,259,000 in aggregate).
•: We closed a six year, $16.0 million permanent loan with a 7.14% fixed interest rate.
•: Our debt to market capitalization is 52.3% and our debt to undepreciated book value of real estate assets is 56.2% as of September 30, 2001. We achieved an EBITDA interest coverage ratio of 2.57x and an EBITDA fixed charge coverage ratio of 1.99x for this quarter. Our quarterly weighted average interest rate dropped to 7.08% in the third quarter of 2001 from 7.22% in the prior quarter.

Operations

•: We renewed 57.7% of our office leases (based upon square footage) with an average capital cost of $4.40 per square foot during the 3^rd quarter. We realized increases in base and total rents on a straight-line basis of 11.9% and 9.1%, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base and total rent on a cash basis increased 7.9% and 5.5%, respectively, on this renewed and retenanted space.

•: Overall occupancy was 97.2% as of September 30, 2001. Occupancy rates approximated 98.3% in the Baltimore/Washington Corridor, which represents 65.2% of our office square footage and 70.5% of our total office revenues for the 3^rd quarter of 2001. We were 97.6% leased as of September 30, 2001.
•: Weighted average lease term of our office portfolio is 4.4 years as of September 30, 2001, with an average contractual rental rate (including tenant reimbursements for operating costs) of $17.73 per square foot.
•: We improved our quarterly cash net operating income for the 79 same office properties by 5.5% over the quarter ended September 30, 2000. Our same store properties represent 83.8% of our office portfolio (based upon square footage) as of September 30, 2001.

Acquisition/Disposition

•: On August 30, 2001, we acquired for $23.8 million four operating properties totaling 187,132 square feet which were 100% leased. This portfolio contributes to our dominant position in the Columbia Gateway Business Park through our portfolio of 12 operating properties comprising 744,000 square feet.
•: On August 3, 2001, we acquired for $11.5 million one property totaling 97,161 rentable square feet, including 5,627 rentable square feet of fitness center space. This property was 100% leased and increases our concentration in the BWI Airport submarket through our ownership of 42 operating properties comprising 2.9 million square feet.
•: On July 2, 2001, we purchased for $6.9 million the remaining 60% joint venture interest in five properties in the BWI Airport submarket totaling 314,594 square feet.

Development

•: In September 2001, we delivered 61,250 square feet of 201 NBP, a joint venture development project. This occupied space is 100% leased to Northrop Grumman Systems and represents 51.9% of this building.

Subsequent Events

•: On October 12, 2001, our $100.0 million term credit facility with Deutsche Banc matured and the outstanding loan balance of $90.9 million was repaid.

Note: This supplemental information contains "forward looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the financial condition of the business. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These statements are not guarantees of future performance, events or results and involve potential risks and uncertainties. Accordingly, actual results may differ materially. The Company undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the Securities and Exchange Commission.

Quarterly Selected Financial Summary Data

(Dollars in thousands)

		2001									2000
		September 30			June 30			March 31			December 31			September 30
Total Revenues from Real Estate Operations		$	32,050		$	28,711		$	28,851		$	27,609		$	27,656
Net Operating Income from Real Estate Operations			22,394			20,153			20,385			19,469			19,606
EBITDA			21,411			20,471			19,490			19,298			18,559
Net Income before Preferred Dividends			5,222			5,081			3,726			4,087			3,685
Preferred Dividends			(1,830	)		(1,613	)		(881	)		(782	)		(781	)

Net Income Available to Common Shareholders		$	3,392		$	3,468		$	2,845		$	3,305		$	2,904

Funds From Operations (FFO)—Diluted		$	11,034		$	10,560		$	10,102		$	9,804		$	9,550
FFO per diluted share		$	0.33		$	0.32		$	0.31		$	0.31		$	0.30
Adjusted FFO—Diluted(A)		$	9,106		$	8,591		$	8,296		$	8,228		$	6,691
Adjusted FFO per diluted share		$	0.27		$	0.26		$	0.25		$	0.26		$	0.23
Payout Ratios:
	FFO—Diluted(B)		67.89	%		62.43	%		64.87	%		65.67	%		67.42	%
	AFFO—Diluted(C)		82.26	%		76.73	%		78.99	%		78.25	%		87.68	%
Total Dividends/Distributions		$	9,185		$	8,069		$	7,334		$	7,220		$	7,220

(A): For the quarter ended September 30, 2000, the Series C convertible preferred units were anti-dilutive for AFFO calculations. Thus, in computing AFFO, the quarterly dividend of $572 was included in the numerator and the related 2,421 of Series C convertible preferred units (as if already converted into common shares) were excluded from the denominator.
(B): Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are subtracted to calculate FFO) by FFO diluted.
(C): Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are subtracted to calculate AFFO) by AFFO diluted. In addition, for the quarter ended September 30, 2000, the quarterly Series C preferred unit dividend of $572 was excluded from the numerator.

Quarterly Consolidated Balance Sheets

(Dollars in thousands except per share data)

			2001									2000
			September 30			June 30			March 31			December 31			September 30
Assets
Investment in real estate:
	Land—operational		$	157,789		$	142,461		$	140,620		$	140,018		$	136,723
	Land—development			23,507			24,488			24,683			19,069			21,888
	Construction in progress			33,860			30,066			22,228			17,489			21,579
	Buildings and improvements			682,474			624,635			615,586			604,666			585,067
	Investment in and advances to real estate joint ventures			8,005			12,009			6,877			3,616			8,606
	Less: accumulated depreciation			(46,361	)		(41,659	)		(37,652	)		(33,271	)		(29,460	)

		Net investment in real estate		859,274			792,000			772,342			751,587			744,403
	Cash and cash equivalents			7,881			2,962			3,806			4,981			3,259
	Restricted cash			4,116			9,633			4,468			2,703			2,007
	Accounts receivable, net			4,720			4,855			5,519			3,245			3,571
	Investment in and advances to other unconsolidated entities			1,939			2,041			2,159			6,124			4,074
	Deferred rent receivable			10,511			9,804			9,335			8,644			7,882
	Deferred charges, net			16,561			16,357			15,550			12,905			12,667
	Prepaid and other assets			8,145			9,383			6,726			4,501			6,836
	Furniture, fixtures and equipment, net of accumulated depreciation			1,699			1,772			1,807			147			166

		Total assets	$	914,846		$	848,807		$	821,712		$	794,837		$	784,865

Liabilities and beneficiaries' equity
Liabilities:
	Mortgage loans payable		$	508,715		$	475,999		$	478,913		$	474,349		$	465,696
	Accounts payable and accrued expenses			8,923			13,361			10,889			10,227			6,435
	Rents received in advance and security deposits			4,319			4,023			4,236			3,883			5,351
	Dividends/distributions payable			8,346			7,918			7,203			7,090			7,090
	Fair value of derivatives			3,894			2,232			1,993			—			—
	Other liabilities			11,082			10,637			10,243			—			—

		Total liabilities		545,279			514,170			513,477			495,549			484,572

Minority interests:
	Preferred Units in the Operating Partnership			24,367			24,367			24,367			24,367			24,367
	Common Units in the Operating Partnership			80,720			78,900			80,467			81,069			81,402
	Other consolidated partnership			231			224			166			124			115

		Total minority interests		105,318			103,491			105,000			105,560			105,884

		Commitments and contingencies		—			—			—			—			—
Beneficiaries' equity:
	Preferred Shares ($0.01 par value; 5,000,000 authorized);
		40,693 designated as Series A Convertible Preferred Shares of beneficial interest (1 share issued as of September 30, 2001)		—			—			—			—			—
		1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of September 30, 2001)		13			13			13			12			12
		544,000 designated as Series D Cumulative Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of September 30, 2001)		5			5			5			—			—
		1,265,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of September 30, 2001)		11			11			—			—			—
		1,425,000 designated as Series F Cumulative Redeemable Preferred Shares of beneficial interest (1,425,000 shares issued as of September 30, 2001)		14			—			—			—			—
	Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 20,756,647 shares issued as of September 30, 2001)			208			208			207			206			206
	Treasury Shares, at cost (166,600 shares as of September 30, 2001)			(1,415	)		(1,415	)		(1,415	)		(1,415	)		(1,415	)
Additional paid-in capital				284,834			249,617			221,682			209,388			209,384
Accumulated deficit				(13,618	)		(12,776	)		(12,222	)		(11,064	)		(10,379	)
Value of unearned restricted Common Share grants				(3,229	)		(3,042	)		(3,042	)		(3,399	)		(3,399	)
Accumulated comprehensive loss				(2,574	)		(1,475	)		(1,993	)		—			—

		Total beneficiaries' equity		264,249			231,146			203,235			193,728			194,409

		Total beneficiaries' equity and minority interests		369,567			334,637			308,235			299,288			300,293

		Total liabilities and beneficiaries' equity	$	914,846		$	848,807		$	821,712		$	794,837		$	784,865


Note:		Prior to January 1, 2001, other unconsolidated entities included Corporate Office Services, Inc. (COS); Corporate Office Management, Inc. (COMI); Corporate Development Services, LLC (CDS) ; MediTract, LLC; Corporate Management Services, LLC (CMS); Corporate Realty Management, LLC (CRM); and Martin G. Knott and Associates, LLC (MGK). Subsequent to January 1, 2001, other unconsolidated entities consist solely of MediTract, LLC and Paragon Smart Technologies, LLC.

Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)

(Dollars and units in thousands)

			2001									2000
			September 30			June 30			March 31			December 31			September 30
Revenues
	Rental revenue		$	29,011		$	25,960		$	25,619		$	24,269		$	23,980
	Tenant recoveries and other revenue			3,039			2,751			3,232			3,340			3,676

		Total Revenues from Real Estate Operations		32,050			28,711			28,851			27,609			27,656
Expenses
	Property operating			4,178			3,492			3,448			3,220			3,596
	Repairs and maintenance			3,759			3,595			3,518			3,491			3,018
	Real estate taxes			1,719			1,471			1,500			1,429			1,436

		Total Property Expenses from Real Estate Operations		9,656			8,558			8,466			8,140			8,050
Net Operating Income from Real Estate Operations				22,394			20,153			20,385			19,469			19,606
	General and administrative			(1,347	)		(1,329	)		(1,446	)		(1,040	)		(1,319	)
	Equity in income of unconsol. real estate joint ventures			27			124			30			—			—
	Earnings from service companies			(378	)		143			(329	)		—			—
	Income from real estate services			715			1,380			850			1,067			383
	Equity in (loss) income of other unconsolidated entities			—			—			—			(198	)		(111	)

EBITDA				21,411			20,471			19,490			19,298			18,559
	Interest expense			(8,342	)		(7,762	)		(8,194	)		(8,266	)		(7,850	)
	Series B, E & F Preferred Share dividends			(1,694	)		(1,477	)		(781	)		(782	)		(781	)
	Amortization of deferred financing costs			(397	)		(546	)		(383	)		(416	)		(349	)
	Income tax (expense) benefit			124			(44	)		122			—			—
	Expense (income) associated with options			5			—			(61	)		—			—
	Depreciation on unconsolidated real estate entities			38			70			(4	)		(4	)		(3	)
	Minority interestholders' share of operations			(7	)		(58	)		4			(9	)		(6	)
	Depreciation of corporate FF&E			(104	)		(94	)		(91	)		(17	)		(20	)

Funds From Operations (FFO)—Diluted				11,034			10,560			10,102			9,804			9,550
	Depreciation and other amortization			(5,148	)		(4,863	)		(4,809	)		(4,485	)		(4,275	)
	Gain on property sales			—			416			—			50			—
	Loss on early extinguishment of debt			—			(99	)		(106	)		(2	)		(109	)
	Cumulative effect adjustment for accounting change			—			—			(263	)		—			—
	Expense (income) associated with options			(5	)		—			61			—			—
	Depreciation on unconsolidated real estate entities			(38	)		(70	)		4			4			3
	Minority interestholders' share of operations			7			58			(4	)		9			6
	Series B, E & F Preferred Share dividends			1,694			1,477			781			782			781

Income Before Minority Interests and Preferred Share Dividends				7,544			7,479			5,766			6,162			5,956
Minority Interests:
	Preferred Units in Operating Partnership			(572	)		(572	)		(572	)		(572	)		(572	)
	Common Units in Operating Partnership			(1,743	)		(1,768	)		(1,472	)		(1,494	)		(1,693	)
	Other consolidated partnership			(7	)		(58	)		4			(9	)		(6	)
Preferred Share dividends				(1,830	)		(1,613	)		(881	)		(782	)		(781	)

Net Income Available to Common Shareholders			$	3,392		$	3,468		$	2,845		$	3,305		$	2,904

Funds From Operations (FFO)—Diluted			$	11,034		$	10,560		$	10,102		$	9,804		$	9,550
	Preferred Units in Operating Partnership(1)			—			—			—			—			(572	)
	Straight line rents			(717	)		(816	)		(690	)		(800	)		(1,872	)
	Non-incremental capital expenditures			(1,211	)		(1,153	)		(1,116	)		(776	)		(415	)

Adjusted Funds from Operations—Diluted			$	9,106		$	8,591		$	8,296		$	8,228		$	6,691

	Preferred dividends/distributions(2)			2,402			2,185			1,453			1,353			1,353
	Common dividends/distributions			6,783			5,884			5,881			5,867			5,867

Total Dividends/Distributions			$	9,185		$	8,069		$	7,334		$	7,220		$	7,220

(1): For the quarter ended September 30, 2000, the Series C convertible preferred units were anti-dilutive for AFFO calculations. Thus, in computing AFFO, the quarterly dividend of $572 was included in the numerator and the related 2,421 of Series C convertible preferred units (as if already converted into common shares) were excluded from the denominator.
(2): Includes Series B, E and F Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.

Quarterly Consolidated Statements of Operations and FFO per Diluted Share

(Shares in thousands)

			2001									2000
			September 30			June 30			March 31			December 31			September 30
Revenues
	Rental revenue		$	0.86		$	0.78		$	0.78		$	0.76		$	0.75
	Tenant recoveries and other revenue			0.09			0.08			0.10			0.10			0.11

		Total Revenues from Real Estate Operations		0.95			0.86			0.88			0.86			0.86
Expenses
	Property operating			0.12			0.10			0.10			0.10			0.11
	Repairs and maintenance			0.11			0.11			0.11			0.11			0.09
	Real estate taxes			0.05			0.04			0.05			0.04			0.04

		Total Property Expenses from Real Estate Operations		0.29			0.26			0.26			0.25			0.25
Net Operating Income from Real Estate Operations				0.67			0.60			0.62			0.61			0.61
	General and administrative			(0.04	)		(0.04	)		(0.04	)		(0.03	)		(0.04	)
	Equity in income of unconsol. real estate joint ventures			0.00			0.00			0.00			—			—
	Earnings from service companies			(0.01	)		0.00			(0.01	)		—			—
	Income from real estate services			0.02			0.04			0.03			0.03			0.01
	Equity in (loss) income of other unconsolidated entities			—			—			—			(0.01	)		(0.00	)

EBITDA				0.64			0.61			0.59			0.60			0.58
	Interest expense			(0.25	)		(0.23	)		(0.25	)		(0.26	)		(0.25	)
	Series B, E & F Preferred Share dividends			(0.05	)		(0.04	)		(0.02	)		(0.02	)		(0.02	)
	Amortization of deferred financing costs			(0.01	)		(0.02	)		(0.01	)		(0.01	)		(0.01	)
	Income tax (expense) benefit			0.00			(0.00	)		0.00			—			—
	Expense (income) associated with options			0.00			—			(0.00	)		—			—
	Depreciation on unconsolidated real estate entities			0.00			0.00			(0.00	)		(0.00	)		(0.00	)
	Minority interestholders' share of operations			(0.00	)		(0.00	)		0.00			(0.00	)		(0.00	)
	Depreciation of corporate FF&E			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Funds From Operations (FFO)—Diluted				0.33			0.32			0.31			0.31			0.30
	Depreciation and other amortization			(0.15	)		(0.15	)		(0.15	)		(0.14	)		(0.13	)
	Gain on property sales			—			0.01			—			0.00			—
	Loss on early extinguishment of debt			—			(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Cumulative effect adjustment for accounting change			—			—			(0.01	)		—			—
	Expense (income) associated with options			(0.00	)		—			0.00			—			—
	Depreciation on unconsolidated real estate entities			(0.00	)		(0.00	)		0.00			0.00			0.00
	Minority interestholders' share of operations			0.00			0.00			(0.00	)		0.00			0.00
	Series B, E & F Preferred Share dividends			0.05			0.04			0.02			0.02			0.02

Income Before Minority Interests and Preferred Share Dividends				0.23			0.22			0.18			0.19			0.19
Minority Interests:
	Preferred Units in Operating Partn ership			(0.02	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
	Common Units in Operating Partnership			(0.05	)		(0.05	)		(0.04	)		(0.05	)		(0.05	)
	Other consolidated partnership			(0.00	)		(0.00	)		0.00			(0.00	)		(0.00	)
Preferred Share dividends				(0.05	)		(0.05	)		(0.03	)		(0.02	)		(0.02	)

Net Income Available to Common Shareholders			$	0.10		$	0.10		$	0.09		$	0.10		$	0.09

Funds From Operations (FFO)—Diluted			$	0.33		$	0.32		$	0.31		$	0.31		$	0.30
	Preferred Units in Operating Partnership			—			—			—			—			(0.02	)
	Straight line rents			(0.02	)		(0.02	)		(0.02	)		(0.02	)		(0.06	)
	Non-incremental capital expenditures			(0.04	)		(0.03	)		(0.03	)		(0.02	)		(0.01	)

Adjusted Funds from Operations—Diluted			$	0.27		$	0.26		$	0.25		$	0.26		$	0.23

For FFO Computations:
Weighted Average Converted Preferred Shares/Units				3,618			3,618			3,299			2,421			2,421
Weighted Average Common Shares/Units Outstanding				30,037			29,746			29,643			29,611			29,561

Weighted Average Diluted Shares Outstanding				33,655			33,364			32,942			32,032			31,982

For AFFO Computations:
Weighted Average Converted Preferred Shares/Units				3,618			3,618			3,299			2,421			—
Weighted Average Common Shares/Units Outstanding				30,037			29,746			29,643			29,611			29,561

Weighted Average Diluted Shares Outstanding				33,655			33,364			32,942			32,032			29,561

Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues

			2001						2000
			September 30		June 30		March 31		December 31		September 30
Revenues
	Rental revenue		91	%	90	%	89	%	88	%	87	%
	Tenant recoveries and other revenue		9	%	10	%	11	%	12	%	13	%

		Total Revenues from Real Estate Operations	100	%	100	%	100	%	100	%	100	%
Expenses
	Property operating		13	%	12	%	12	%	12	%	13	%
	Repairs and maintenance		12	%	13	%	12	%	13	%	11	%
	Real estate taxes		5	%	5	%	5	%	5	%	5	%

		Total Property Expenses from Real Estate Operations	30	%	30	%	29	%	29	%	29	%
Net Operating Income from Real Estate Operations			70	%	70	%	71	%	71	%	71	%
	General and administrative		(4	)%	(5	)%	(5	)%	(4	)%	(5	)%
	Equity in income of unconsol. real estate joint ventures		0	%	0	%	0	%	0	%	0	%
	Earnings from service companies		(1	)%	0	%	(1	)%	0	%	0	%
	Income from real estate services		2	%	5	%	3	%	4	%	1	%
	Equity in (loss) income of other unconsolidated entities		0	%	0	%	0	%	(1	)%	(0	)%

EBITDA			67	%	71	%	68	%	70	%	67	%
	Interest expense		(26	)%	(27	)%	(28	)%	(30	)%	(28	)%
	Series B, E & F Preferred Share dividends		(5	)%	(5	)%	(3	)%	(3	)%	(3	)%
	Amortization of deferred financing costs		(1	)%	(2	)%	(1	)%	(2	)%	(1	)%
	Income tax (expense) benefit		0	%	(0	)%	0	%	0	%	0	%
	Expense (income) associated with options		0	%	0	%	(0	)%	0	%	0	%
	Depreciation on unconsolidated real estate entities		0	%	0	%	(0	)%	(0	)%	(0	)%
	Minority interestholders' share of operations		(0	)%	(0	)%	0	%	(0	)%	(0	)%
	Depreciation of corporate FF&E		(0	)%	(0	)%	(0	)%	(0	)%	(0	)%

Funds From Operations (FFO)—Diluted			34	%	37	%	35	%	36	%	35	%
	Depreciation and other amortization		(16	)%	(17	)%	(17	)%	(16	)%	(15	)%
	Gain on property sales		0	%	1	%	0	%	0	%	0	%
	Loss on early extinguishment of debt		0	%	(0	)%	(0	)%	(0	)%	(0	)%
	Cumulative effect adjustment for accounting change		0	%	0	%	(1	)%	0	%	0	%
	Expense (income) associated with options		(0	)%	0	%	0	%	0	%	0	%
	Depreciation on unconsolidated real estate entities		(0	)%	(0	)%	0	%	0	%	0	%
	Minority interestholders' share of operations		0	%	0	%	(0	)%	0	%	0	%
	Series B, E & F Preferred Share dividends		5	%	5	%	3	%	3	%	3	%

Income Before Minority Interests and Preferred Share Dividends			24	%	26	%	20	%	22	%	22	%
Minority Interests:
	Preferred Units in Operating Partnership		(2	)%	(2	)%	(2	)%	(2	)%	(2	)%
	Common Units in Operating Partnership		(5	)%	(6	)%	(5	)%	(5	)%	(6	)%
	Other consolidated partnership		(0	)%	(0	)%	0	%	(0	)%	(0	)%
Preferred Share dividends			(6	)%	(6	)%	(3	)%	(3	)%	(3	)%

Net Income Available to Common Shareholders			11	%	12	%	10	%	12	%	11	%

Funds From Operations (FFO)—Diluted			34	%	37	%	35	%	36	%	35	%
	Preferred Units in Operating Partnership		0	%	0	%	0	%	0	%	(2	)%
	Straight line rents		(2	)%	(3	)%	(2	)%	(3	)%	(7	)%
	Non-incremental capital expenditures		(4	)%	(4	)%	(4	)%	(3	)%	(2	)%

Adjusted Funds from Operations—Diluted			28	%	30	%	29	%	30	%	24	%

Quarterly Equity Analysis

(Amounts in thousands, except per share data, share prices and ratios)

			2001									2000
			September 30			June 30			March 31			December 31			September 30
Common Equity—End of Quarter
	Common Shares(1)			20,590			20,526			20,429			20,409			20,407
	Common Units			9,617			9,307			9,388			9,388			9,388

Total				30,207			29,833			29,817			29,797			29,795

Convertible Preferred Equity—End of Quarter
	Convertible Series A Preferred Shares Outstanding(2)			0			0			0			0			0
	Conversion Ratio			1.8748			1.8748			1.8748			1.8748			1.8748
	Common Shares Issued Assuming Conversion			0			0			0			0			0
	Preferred Share Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
	Convertible Series D Preferred Shares Outstanding(3)			544			544			544			n/a			n/a
	Conversion Ratio			2.2000			2.2000			2.2000			n/a			n/a
	Common Shares Issued Assuming Conversion			1,197			1,197			1,197			n/a			n/a
	Preferred Share Liquidation Preference		$	25.00		$	25.00		$	25.00			n/a			n/a
	Convertible Series C Preferred Units Outstanding			1,017			1,017			1,017			1,017			1,017
	Conversion Ratio			2.3810			2.3810			2.3810			2.3810			2.3810
	Common Units Issued Assuming Conversion			2,421			2,421			2,421			2,421			2,421
	Preferred Share Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Perpetual Preferred Equity—End of Quarter
	Redeemable Series B Shares Outstanding			1,250			1,250			1,250			1,250			1,250
	Preferred Share Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
	Redeemable Series E Shares Outstanding(4)			1,150			1,150			n/a			n/a			n/a
	Preferred Share Liquidation Preference		$	25.00		$	25.00			n/a			n/a			n/a
	Redeemable Series F Shares Outstanding(5)			1,425			n/a			n/a			n/a			n/a
	Preferred Share Liquidation Preference		$	25.00			n/a			n/a			n/a			n/a
Weighted Average Shares:
	Weighted Average Common Shares Outstanding			20,141			20,077			19,982			19,947			19,934
	Weighted Average Preferred Shares Outstanding Assuming Conversion			1,197			1,197			878			—			—
	Weighted Average Dilutive Options			481			334			273			276			239
	Weighted Average Common Units			9,415			9,335			9,388			9,388			9,388
	Weighted Average Preferred Units Assuming Conversion			2,421			2,421			2,421			2,421			2,421

Weighted Avg. Shares/Units Outstanding Assuming Conversion of Preferred Shares/Units				33,655			33,364			32,942			32,032			31,982

Common Shares Trading Volume
	Average Daily Volume (Shares)			30			24			21			13			20
	Average Daily Volume (Dollars in thousands)		$	313.45		$	237.66		$	198.00		$	122.20		$	188.38
	As a Percentage of Common Shares			0.1	%		0.1	%		0.1	%		0.1	%		0.1	%
Common Share Price Range
	Quarterly High		$	11.50		$	10.60		$	9.98		$	10.00		$	10.13
	Quarterly Low		$	9.86		$	9.36		$	9.03		$	8.94		$	8.75
	Quarterly Average		$	10.61		$	10.10		$	9.59		$	9.63		$	9.39
	End of Quarter		$	10.90		$	10.00		$	9.51		$	9.94		$	9.94
Capitalization
	Liquidation Value of Preferred Shares/Units		$	134,642		$	99,017		$	70,267		$	56,667		$	56,667
	Market Value of Common Shares/Units			329,256			298,330			283,560			296,106			296,088

		Total Equity Market Capitalization	$	463,898		$	397,347		$	353,826		$	352,773		$	352,754

		Total Debt	$	508,715		$	475,999		$	478,913		$	474,349		$	465,696

		Total Market Capitalization	$	972,613		$	873,346		$	832,739		$	827,122		$	818,450

Debt to Total Market Capitalization				52.3	%		54.5	%		57.5	%		57.3	%		56.9	%
Debt to Undepreciated Book Value of Real Estate Assets				56.2	%		57.1	%		59.1	%		60.4	%		60.0	%

(1): Net of 166,600 treasury shares as of September 30, 2001.
(2): On September 28, 2000, all Convertible Series A preferred shares except for 1 share were converted into common shares.
(3): We issued 544,000 Convertible Series D preferred shares on January 25, 2001.
(4): We issued 1,150,000 Cumulative Redeemable Series E preferred shares on April 6, 2001.
(5): We issued 1,425,000 Cumulative Redeemable Series F preferred shares on September 13, 2001.

Quarterly Valuation Analysis

(Dollars in thousands except per share data and ratios)

	2001									2000
	September 30			June 30			March 31			December 31			September 30
PRICING MULTIPLES
NOI Multiple (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Total Debt)/Ann. NOI		10.93	x		10.82	x		10.17	x		10.54	x		10.25	x
EBITDA Multiple (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Total Debt)/Ann. EBITDA		11.43	x		10.66	x		10.64	x		10.63	x		10.83	x
FFO Multiple (Quarter End Common Share Price/Ann. FFO—diluted)		8.31	x		7.90	x		7.75	x		8.12	x		8.32	x
AFFO Multiple (Quarter End Common Share Price/Ann. AFFO—diluted)		10.07	x		9.71	x		9.44	x		9.67	x		10.98	x
NOI Yield (Ann. NOI/(Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))		9.15	%		9.24	%		9.83	%		9.49	%		9.76	%
EBITDA Yield (Ann. EBITDA/(Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))		8.75	%		9.38	%		9.40	%		9.41	%		9.24	%
FFO Yield (Ann. FFO/Quarter End Common Share Price)		12.03	%		12.66	%		12.90	%		12.32	%		12.02	%
AFFO Yield (Ann. AFFO/Quarter End Common Share Price)		9.93	%		10.30	%		10.59	%		10.34	%		9.11	%
Total Market Capitalization Per Square Foot ((Market Value of Common Stock + Preferred Share/Units + Total Debt)/GLA)(1)	$	133.29		$	129.16		$	124.70		$	127.79		$	128.86
RETURNS
Yield on Real Estate Owned—NOI (Ann. NOI/Avg. Adjusted Gross Real Estate Investment)(2)		11.12	%		10.54	%		10.85	%		10.58	%		10.86	%
Yield on Real Estate Owned—EBITDA (Ann. EBITDA/Avg. Adjusted Gross Real Estate Investment)(2)		10.63	%		10.71	%		10.37	%		10.49	%		10.28	%
Return on Book Value of Average Equity & Minority Interest (Ann. EBTDA/Avg. Equity & Minority Interest)		14.85	%		15.82	%		14.87	%		14.72	%		14.24	%

(1): Excludes square footage of assets under development, under construction or held in a joint venture.
(2): Excludes land-development, construction in progress and investment in development real estate joint ventures as these assets are not yet income generating.

Quarterly Debt Analysis

(Dollars in thousands)

		2001									2000
		September 30			June 30			March 31			December 31			September 30
Debt Outstanding
	Mortgage Loans	$	475,163		$	409,670		$	356,872		$	329,955		$	338,063
	Construction Loans		15,852			13,099			18,950			33,058			25,586
	Revolving Credit Facility		—			—			29,091			29,091			4,761
	Secured Revolving Credit Facility		17,700			53,230			74,000			82,245			97,285

		$	508,715		$	475,999		$	478,913		$	474,349		$	465,695

Average Outstanding Balance
	Mortgage Loans	$	446,784		$	377,222		$	344,023		$	325,971		$	319,745
	Construction Loans		15,502			10,436			26,967			28,277			37,700
	Revolving Credit Facility		—			28,445			29,091			22,545			2,381
	Secured Revolving Credit Facility		52,548			59,123			75,507			90,910			91,239

		$	514,834		$	475,226		$	475,588		$	467,703		$	451,065

Interest Rate Structure
	Fixed	$	328,029		$	305,431		$	240,501		$	201,715		$	305,614
	Variable		—			—			13,412			147,634			60,081
	Variable Subject to Interest Rate Protection(1-4)		180,686			170,568			225,000			125,000			100,000

		$	508,715		$	475,999		$	478,913		$	474,349		$	465,695

	% of Fixed Rate Loans(A)		64.48	%		64.17	%		50.22	%		42.52	%		65.63	%
	% of Variable Rate Loans		35.52	%		35.83	%		49.78	%		57.48	%		34.37	%

			100.00	%		100.00	%		100.00	%		100.00	%		100.00	%


(A) Excludes interest rate protection agreements.
Average Interest Rates
	Mortgage & Construction Loans		7.12	%		7.31	%		7.44	%		7.84	%		7.62	%
	Revolving Credit Facility		6.73	%		6.71	%		7.31	%		8.17	%		8.12	%
	Secured Revolving Credit Facility		n/a			6.93	%		7.85	%		8.38	%		8.33	%
	Total Weighted Average		7.08	%		7.22	%		7.50	%		7.96	%		7.64	%
Debt Ratios
Debt to Total Market Capitalization			52.3	%		54.5	%		57.5	%		57.3	%		56.9	%
Debt to Undepreciated Book Value of Real Estate Assets			56.2	%		57.1	%		59.1	%		60.4	%		60.0	%
Coverage Ratios (excluding capitalized interest)
	Interest Coverage—NOI (NOI/Interest)		2.68	x		2.60	x		2.49	x		2.36	x		2.50	x
	Interest Coverage—EBITDA (EBITDA/Interest)		2.57	x		2.64	x		2.38	x		2.33	x		2.36	x
	Interest Coverage—EBITDA—YTD (EBITDA/Interest—Year-to-date)		2.53	x		2.50	x		2.38	x		2.38	x		2.40	x
	Debt Service Coverage—NOI (NOI/(Interest + Principal Amortization))		2.32	x		2.28	x		2.23	x		2.09	x		2.23	x
	Debt Service Coverage—EBITDA (EBITDA/(Interest + Principal Amortization))		2.22	x		2.32	x		2.13	x		2.07	x		2.11	x
	Fixed Charge Coverage—NOI (NOI/(Interest + Preferred Distribution))		2.08	x		2.03	x		2.11	x		2.02	x		2.13	x
	Fixed Charge Coverage—EBITDA (EBITDA/(Interest + Preferred Distribution))		1.99	x		2.06	x		2.02	x		2.01	x		2.02	x

(1): We purchased a $50 million 2-year cap on LIBOR at a rate of 7.7% which expires May 31, 2002.
(2): We purchased a $50 million 1-year cap on LIBOR at a rate of 7.0% which expires October 13, 2001.
(3): We purchased a $25 million 1-year cap on LIBOR at a rate of 7.0% which expires October 13, 2001.
(4): We executed a $100 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 5.76% over a two-year period which expires January 2, 2003.

Quarterly Operating Ratios

(Dollars in thousands except per share data and ratios)

		2001									2000
		September 30			June 30			March 31			December 31			September 30
OPERATING RATIOS
NOI as a % of Real Estate Revenues
	(NOI / (Rental Revenue + Oper. Expense Reimb.))		69.87	%		70.19	%		70.66	%		70.52	%		70.89	%
EBITDA as a % of Real Estate Revenues
	(EBITDA / (Rental Revenue + Oper. Expense Reimb.))		66.80	%		71.30	%		67.55	%		69.90	%		67.11	%
G&A as a % of Real Estate Revenues
	(G&A / (Rental Revenue + Oper. Expense Reimb.))		4.20	%		4.63	%		5.01	%		3.77	%		4.77	%
G&A as a % of EBITDA
	(G&A / EBITDA)		6.29	%		6.49	%		7.42	%		5.39	%		7.11	%
Quarter end occupancy for operating portfolio			97.18	%		96.92	%		96.95	%		97.03	%		97.33	%
Quarter end % leased for operating portfolio			97.57	%		97.60	%		98.39	%		98.17	%		98.30	%
Non-Incremental Capital Expenditures		$	1,211		$	1,153		$	1,116		$	776		$	415
Non-Incremental Capital Expenditures per average square feet		$	0.17		$	0.17		$	0.17		$	0.12		$	0.07
Non-Incremental Capital Expenditures per Diluted Share		$	0.04		$	0.03		$	0.03		$	0.02		$	0.01
Non-Incremental Capital Expenditures as a % of NOI			5.41	%		5.72	%		5.47	%		3.99	%		2.12	%

Quarterly Dividend Analysis

		2001									2000
		September 30			June 30			March 31			December 31			September 30
Common Share Dividends
	Dividends per share/unit	$	0.21		$	0.20		$	0.20		$	0.20		$	0.20
	Increase over prior quarter		5.0	%		0.0	%		0.0	%		0.0	%		5.3	%
	Increase over prior year		5.0	%		5.3	%		5.3	%		5.3	%		5.3	%
Common Dividend Payout Ratios
	Payout—FFO—Diluted ((Dividend + Distributions)/FFO)		67.9	%		62.4	%		64.9	%		65.7	%		67.4	%
	Payout—AFFO—Diluted (Dividend /FAD)		82.3	%		76.7	%		79.0	%		78.3	%		87.7	%
	Dividend Coverage—FFO—Diluted (FFO /dividends)		1.47x			1.60x			1.54x			1.52x			1.48x
	Dividend Coverage—AFFO—Diluted (AFFO /dividends)		1.22x			1.30x			1.27x			1.28x			1.14x
Common Dividend Yields
	Dividend Yield		7.71	%		8.00	%		8.41	%		8.05	%		8.05	%
Series C Preferred Unit Distributions
	Preferred Unit Distributions Per Share	$	0.5625		$	0.5625		$	0.5625		$	0.5625		$	0.5625
	Preferred Unit Distributions Yield		9.00	%		9.00	%		9.00	%		9.00	%		9.00	%
	Quarter End Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series A Preferred Share Dividends
	Preferred Share Dividends Per Share	$	0.34375		$	0.34375		$	0.34375		$	0.34375		$	0.34375
	Preferred Share Dividend Yield		5.50	%		5.50	%		5.50	%		5.50	%		5.50	%
	Quarter End Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series B Preferred Share Dividends
	Preferred Share Dividends Per Share	$	0.6250		$	0.6250		$	0.6250		$	0.6250		$	0.6250
	Preferred Share Dividend Yield		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%
	Quarter End Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series D Preferred Share Dividends(1)
	Preferred Share Dividends Per Share	$	0.2500		$	0.2500		$	0.2500			n/a			n/a
	Preferred Share Dividend Yield		4.00	%		4.00	%		4.00	%		n/a			n/a
	Quarter End Liquidation Preference	$	25.00		$	25.00		$	25.00			n/a			n/a
Series E Preferred Share Dividends(2)
	Preferred Share Dividends Per Share	$	0.6406		$	0.6406			n/a			n/a			n/a
	Preferred Share Dividend Yield		10.25	%		10.25	%		n/a			n/a			n/a
	Quarter End Liquidation Preference	$	25.00		$	25.00			n/a			n/a			n/a
Series F Preferred Share Dividends(3)
	Preferred Share Dividends Per Share	$	0.6172			n/a			n/a			n/a			n/a
	Preferred Share Dividend Yield		9.875	%		n/a			n/a			n/a			n/a
	Quarter End Liquidation Preference	$	25.00			n/a			n/a			n/a			n/a

(1): We issued 544,000 of Series D Convertible Preferred Shares on January 25, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.1833 per share.
(2): We issued 1,150,000 of Series E Cumulative Redeemable Preferred Shares on April 6, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.6050 per share.
(3): We issued 1,425,000 of Series F Cumulative Redeemable Preferred Shares on September 13, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.123435 per share.

Investor Composition and Analyst Coverage

(as of September 30, 2001)

Shareholder Classification	Common Shares	Common Units	As if Converted Preferred Shares/Units	Total	Fully Diluted Ownership % of Total
Constellation Real Estate, Inc.	8,876,171	—	2	8,876,173	26.24	%
Insiders	1,149,628	7,837,937	—	8,987,565	26.57	%
Institutional Ownership	3,258,368	—	—	3,258,368	9.63	%
Other/Retail	7,305,880	1,779,422	3,617,472	12,702,774	37.55	%

	20,590,047	9,617,359	3,617,474	33,824,880	100.00	%

Research Coverage	September 30, 2001	June 30, 2001	March 31, 2001	December 31, 2000	September 30, 2000
A. G. Edwards	x	x	x	x	x
Credit Suisse First Boston	x	x	x	x	x
Deutsche Banc Alex. Brown	x	x	x	x
Ferris, Baker Watts, Incorporated	x	x	x
Janney Montgomery Scott	x	x	x	x	x
Legg Mason Wood Walker, Inc.	x	x	x	x	x
McDonald Investments	x	x	x	x	x
Prudential Securities Incorporated					x

Source: Institutional ownership was obtained from filed Forms 13(f) as of June 30, 2001 per Vickers Stock Research Corporation.

Debt Maturity Schedule—September 30, 2001

(Dollars in thousands)

	Mortgages				Construction Loans(1)
	Mortgages				Construction Loans(1)						$125,000 Secured Revolving Credit Facility
Year of Maturity	Monthly Amortization		Due on Maturity		Monthly Amortization		Due on Maturity(2)		Term Credit(3) Facility		$125,000 Secured Revolving Credit Facility		Total Scheduled Payments
2001	$	1,397	$	—	$	—	$	—	$	—	$	—	$	1,397
2002		5,951		16,215		158		—		90,954		—		113,278
2003		6,240		28,469		173		15,521		—		—		50,403
2004		6,272		36,508		—		—		—		17,700		60,480
2005		6,282		16,368		—		—		—		—		22,650
2006		6,154		59,975		—		—		—		—		66,129
2007		5,049		20,442		—		—		—		—		25,491
2008		3,200		142,879		—		—		—		—		146,079
2009		331		22,477		—		—		—		—		22,808

	$	40,876	$	343,333	$	331	$	15,521	$	90,954	$	17,700	$	508,715

Notes:

(1): The construction loan balances as of September 30, 2001 represent the outstanding balances as of that date.
(2): We have the right to extend construction loans of $8,952 and $6,900, for a one-year period subject to certain conditions, upon maturity in 2002. The above table reflects the maturities in 2003, as if the loans had been extended.
(3): The Term Credit Facility was extended through October 13, 2001. We have the right to extend for another one-year period, subject to certain conditions. This loan has been presented as maturing in October 2002 in the above table. However, this loan was repaid on October 12, 2001.

We have obtained interest rate protection agreements as follows:

$50 million cap on thirty-day LIBOR at 7.7% expiring in May 2002.
$50 million cap on thirty-day LIBOR at 7.0% expiring in October 2001.
$25 million cap on thirty-day LIBOR at 7.0% expiring in October 2001.
$100 million notional amount swap of thirty-day LIBOR at 5.76% expiring in January 2003.

Property Summary by Region—September 30, 2001

		Operating Property Count	Owned or Joint Venture (JV)	Submarket	State	Year Built or Renovated	Single Story (S) or Multi-story (M)	Rentable Square Feet	Anticipated Rentable Square Feet— Development
Office Properties
*Baltimore /Washington Corridor*
2730 Hercules Road		1	Owned	BWI Airport	MD	1990	M	240,336
132 National Business Parkway		2	Owned	BWI Airport	MD	2000	M	118,456
2721 Phoenix Road (221 NBP)		3	Owned	BWI Airport	MD	2000	M	117,890
1306 Concourse Drive		4	Owned	BWI Airport	MD	1990	M	114,046
870-880 Elkridge Landing Road		5	Owned	BWI Airport	MD	1981	M	97,161
900 Elkridge Landing Road		6	Owned	BWI Airport	MD	1982	M	97,139
1199 Winterson Road		7	Owned	BWI Airport	MD	1988	M	96,636
920 Elkridge Landing Road		8	Owned	BWI Airport	MD	1982	M	96,566
134 National Business Parkway		9	Owned	BWI Airport	MD	1999	M	93,482
133 National Business Parkway		10	Owned	BWI Airport	MD	1997	M	88,666
141 National Business Parkway		11	Owned	BWI Airport	MD	1990	M	86,964
135 National Business Parkway		12	Owned	BWI Airport	MD	1998	M	86,863
1302 Concourse Drive		13	Owned	BWI Airport	MD	1996	M	84,607
7467 Ridge Road		14	Owned	BWI Airport	MD	1990	M	73,756
881 Elkridge Landing Road		15	Owned	BWI Airport	MD	1986	M	73,572
7240 Parkway Drive		16	Owned	BWI Airport	MD	1985	M	73,500
1099 Winterson Road		17	Owned	BWI Airport	MD	1988	M	70,938
131 National Business Parkway		18	Owned	BWI Airport	MD	1990	M	68,906
1190 Winterson Road		19	Owned	BWI Airport	MD	1987	M	68,567
911 Elkridge Landing Road		20	Owned	BWI Airport	MD	1985	M	68,296
849 International Drive		21	Owned	BWI Airport	MD	1988	M	68,195
1201 Winterson Road		22	Owned	BWI Airport	MD	1985	M	67,903
999 Corporate Boulevard		23	Owned	BWI Airport	MD	2000	M	67,351
2701 Phoenix Road (201 NBP)		24	JV	BWI Airport	MD	2001	M	61,250	56,750
7318 Parkway Drive		25	Owned	BWI Airport	MD	1984	S	59,204
900 International Drive		26	Owned	BWI Airport	MD	1986	S	57,140
930 International Drive		27	Owned	BWI Airport	MD	1986	S	57,140
901 Elkridge Landing Road		28	Owned	BWI Airport	MD	1984	M	56,847
891 Elkridge Landing Road		29	Owned	BWI Airport	MD	1984	M	56,489
921 Elkridge Landing Road		30	Owned	BWI Airport	MD	1983	M	54,057
939 Elkridge Landing Road		31	Owned	BWI Airport	MD	1983	M	53,031
938 Elkridge Landing Road		32	Owned	BWI Airport	MD	1984	M	52,988
940 Elkridge Landing Road		33	Owned	BWI Airport	MD	1984	M	51,704
800 International Drive		34	Owned	BWI Airport	MD	1988	S	50,979
1340 Ashton Road		35	Owned	BWI Airport	MD	1989	S	46,400
7321 Parkway Drive		36	Owned	BWI Airport	MD	1984	S	39,822
1334 Ashton Road		37	Owned	BWI Airport	MD	1989	S	37,565
1331 Ashton Road		38	Owned	BWI Airport	MD	1989	S	29,936
1350 Dorsey Road		39	Owned	BWI Airport	MD	1989	S	19,992
1344 Ashton Road		40	Owned	BWI Airport	MD	1989	M	16,865
1341 Ashton Road		41	Owned	BWI Airport	MD	1989	S	15,841
1343 Ashton Road		42	Owned	BWI Airport	MD	1989	S	9,962
2711 Phoenix Road (211 NBP)			JV	BWI Airport	MD		M		150,000
1304 Concourse Drive			Owned	BWI Airport	MD		M		100,000

	Subtotal (continued on next page)							2,947,008	306,750


	Subtotal (continued from prior page)							2,947,008	306,750
1615 and 1629 Thames Street		43	Owned	Baltimore City	MD	1989	M	103,683
9690 Deereco Road		44	Owned	North Baltimore Co.	MD	1988	M	133,737
375 West Padonia Road		45	Owned	North Baltimore Co.	MD	1986	M	100,804
7200 Riverwood Drive		46	Owned	Howard Co. Perimeter	MD	1986	S	160,000
9140 Route 108		47	Owned	Howard Co. Perimeter	MD	1974/1985	S	150,000
6940 Columbia Gateway Drive		48	Owned	Howard Co. Perimeter	MD	1999	M	108,737
6950 Columbia Gateway Drive		49	Owned	Howard Co. Perimeter	MD	1998	M	107,778
7067 Columbia Gateway Drive		50	Owned	Howard Co. Perimeter	MD	2001	M	82,032
6750 Alexander Bell Drive		51	Owned	Howard Co. Perimeter	MD	2001	M	78,460
6700 Alexander Bell Drive		52	Owned	Howard Co. Perimeter	MD	1988	M	75,635
6740 Alexander Bell Drive		53	Owned	Howard Co. Perimeter	MD	1992	M	61,957
8815 Centre Park Drive		54	Owned	Howard Co. Perimeter	MD	1987	M	53,782
6716 Alexander Bell Drive		55	Owned	Howard Co. Perimeter	MD	1990	M	52,002
Montpelier Research Phase I		56	JV	Howard Co. Perimeter	MD	2001	S	43,785
7065 Columbia Gateway Drive		57	Owned	Howard Co. Perimeter	MD	2000	S	38,560
6760 Alexander Bell Drive		58	Owned	Howard Co. Perimeter	MD	1991	M	37,248
7063 Columbia Gateway Drive		59	Owned	Howard Co. Perimeter	MD	2000	S	36,936
6708 Alexander Bell Drive		60	Owned	Howard Co. Perimeter	MD	1988	M	35,040
7061 Columbia Gateway Drive		61	Owned	Howard Co. Perimeter	MD	2000	M	29,604
Robert Fulton Drive—Phase I			JV	Howard Co. Perimeter	MD		M		115,850
6731 Columbia Gateway Drive			Owned	Howard Co. Perimeter	MD		M		122,889
6724 Alexander Bell Drive			Owned	Howard Co. Perimeter	MD		M		30,855
14502 Greenview Drive		62	Owned	Laurel	MD	1988	M	71,873
14504 Greenview Drive		63	Owned	Laurel	MD	1985	M	69,194
4260 Forbes Boulevard			JV	Lanham	MD		S		54,692
6009—6011 Oxon Hill Road		64	Owned	Southern Prince George's County	MD	1990	M	181,768

	Total Baltimore / Washington Corridor:							4,759,623	631,036

*Greater Philadelphia*
753 Jolly Road		1	Owned	Blue Bell	PA	1960/1992-94	M	419,472
785 Jolly Road		2	Owned	Blue Bell	PA	1970/1996	M	219,065
760 Jolly Road		3	Owned	Blue Bell	PA	1974/1994	M	208,854
751 Jolly Road		4	Owned	Blue Bell	PA	1966/1991	M	112,958

	Total Greater Philadelphia:							960,349	—


*Greater Harrisburg*
2605 Interstate Drive		1	Owned	East Shore	PA	1990	M	84,404
6345 Flank Drive		2	Owned	East Shore	PA	1989	S	69,443
6340 Flank Drive		3	Owned	East Shore	PA	1988	S	68,200
2601 Market Place		4	Owned	East Shore	PA	1989	M	67,743
6400 Flank Drive		5	Owned	East Shore	PA	1992	S	52,439
6360 Flank Drive		6	Owned	East Shore	PA	1988	S	46,500
6385 Flank Drive		7	Owned	East Shore	PA	1995	S	32,800
6380 Flank Drive		8	Owned	East Shore	PA	1991	S	32,000
6405 Flank Drive		9	Owned	East Shore	PA	1991	S	32,000
95 Shannon Road		10	Owned	East Shore	PA	1999	S	21,976
75 Shannon Road		11	Owned	East Shore	PA	1999	S	20,887
6375 Flank Drive		12	Owned	East Shore	PA	2000	S	19,783
85 Shannon Road		13	Owned	East Shore	PA	1999	S	12,863
5035 Ritter Road		14	Owned	West Shore	PA	1988	S	56,556
5070 Ritter Road—Building A		15	Owned	West Shore	PA	1989	S	32,309
5070 Ritter Road—Building B		16	Owned	West Shore	PA	1989	S	28,000

Total Greater Harrisburg:								677,903	—

*Northern/Central New Jersey*
431 Ridge Road		1	Owned	Exit 8A—Cranbury	NJ	1958/1998	S	170,000
429 Ridge Road		2	Owned	Exit 8A—Cranbury	NJ	1966/1996	M	142,385
68 Culver Road		3	Owned	Exit 8A—Cranbury	NJ	2000	M	57,280
104 Interchange Plaza		4	Owned	Exit 8A—Cranbury	NJ	1990	M	47,677
101 Interchange Plaza		5	Owned	Exit 8A—Cranbury	NJ	1985	M	43,621
47 Commerce		6	Owned	Exit 8A—Cranbury	NJ	1992/1998	S	41,398
437 Ridge Road		7	Owned	Exit 8A—Cranbury	NJ	1962/1996	S	30,000
7 Centre Drive		8	Owned	Exit 8A—Cranbury	NJ	1989	S	19,466
8 Centre Drive		9	Owned	Exit 8A—Cranbury	NJ	1986	S	16,199
2 Centre Drive		10	Owned	Exit 8A—Cranbury	NJ	1989	S	16,132
4301 Route 1		11	Owned	Monmouth Junction	NJ	1986	M	61,300
695 Route 46		12	Owned	Wayne	NJ	1990	M	157,394
710 Route 46		13	Owned	Wayne	NJ	1985	M	102,002	—

	Total Northern / Central New Jersey:							904,854	—

TOTAL OFFICE PROPERTIES		97						7,302,729	631,036

Retail Properties
114 National Business Parkway			Owned	BWI Airport	MD		S	—	10,000

	TOTAL RETAIL PROPERTIES							—	10,000

TOTAL PORTFOLIO		97						7,302,729	641,036

Property Occupancy Rates by Region by Quarter

	Office
	Greater Philadelphia		Baltimore / Washington Corridor		Northern / Central New Jersey		Greater Harrisburg		Total Office		Retail		Total Portfolio
September 30, 2001
Number of Buildings	4		64		13		16		97		—		97
Rentable Square Feet	960,349		4,759,623		904,854		677,903		7,302,729		—		7,302,729
Percent Occupied	100.00	%	98.33	%	95.65	%	87.19	%	97.18	%	0	%	97.18	%
June 30, 2001
Number of Buildings	4		58		13		16		91		—		91
Rentable Square Feet	960,349		4,413,104		904,854		677,903		6,956,210		—		6,956,210
Percent Occupied	100.00	%	97.96	%	94.19	%	89.41	%	96.92	%	0	%	96.92	%
March 31, 2001
Number of Buildings	4		55		14		16		89		—		89
Rentable Square Feet	960,349		4,258,610		970,048		677,458		6,866,465		—		6,866,465
Percent Occupied	100.00	%	97.76	%	94.03	%	91.75	%	96.95	%	0	%	96.95	%
December 31, 2000
Number of Buildings	4		49		14		16		83		—		83
Rentable Square Feet	960,349		3,864,766		970,048		677,468		6,472,631		—		6,472,631
Percent Occupied	100.00	%	97.84	%	93.07	%	93.86	%	97.03	%	0	%	97.03	%
September 30, 2000
Number of Buildings	4		47		15		15		81		1		82
Rentable Square Feet	960,349		3,594,058		990,385		657,685		6,202,477		149,191		6,351,668
Percent Occupied	100.00	%	97.79	%	96.08	%	92.82	%	97.33	%	97.04	%	97.33	%

Top Twenty Office Tenants as of September 30, 2001

(Dollars and Square Feet in thousands)

Tenant	Number of Leases	Total Occupied Square Feet	Percentage of Total Occupied Square Feet		Total Rental Revenue(1)		Percentage of Total Rental Revenue		Weighted Average Remaining Lease Term(2)
United States of America(3)	20	965	13.6	%	$	17,265	14.0	%	4.4
AT&T Local Services(4),(5)	6	415	5.8	%		8,487	6.9	%	7.0
Unisys(6)	3	741	10.4	%		7,444	6.1	%	7.8
Ciena Corporation	5	298	4.2	%		3,816	3.1	%	3.7
Magellan Behavioral Health, Inc.	2	151	2.1	%		3,278	2.7	%	2.3
Booz-Allen & Hamilton	3	128	1.8	%		2,542	2.1	%	2.2
Johns Hopkins University(4)	4	124	1.7	%		2,432	2.0	%	4.8
General Dynamics Government Corp.	2	102	1.4	%		2,370	1.9	%	8.8
Corvis Corporation	3	157	2.2	%		2,337	1.9	%	4.7
Merck & Co., Inc.(6)	1	219	3.1	%		2,237	1.8	%	7.8
Northrop Grumman Systems	2	88	1.2	%		2,140	1.7	%	5.7
Commonwealth of Pennsylvania(4)	9	154	2.2	%		1,905	1.5	%	2.2
Bookham Technology, Inc.	1	150	2.1	%		1,870	1.5	%	6.3
Arbros Communications, Inc.	1	91	1.3	%		1,533	1.2	%	9.6
Sun Microsystems, Inc.	2	61	0.9	%		1,403	1.1	%	4.3
Credit Management Solutions, Inc.	1	71	1.0	%		1,381	1.1	%	7.2
Deutsche Banc Alex. Brown	1	84	1.2	%		1,327	1.1	%	2.7
Ameritrade Holding Corporation	1	63	0.9	%		1,318	1.1	%	8.8
Mentor Technologies	1	60	0.8	%		1,307	1.1	%	1.5
Raytheon E-Systems(4)	3	65	0.9	%		1,191	1.0	%	1.7
Subtotal Top 20 Office Tenants	71	4,187	59.0	%		67,583	54.9	%	5.3
All remaining tenants	366	2,910	41.0	%		55,413	45.1	%	3.2

Total/Weighted Average	437	7,097	100.0	%	$	122,996	100.0	%	4.4

(1): Total Rental Revenue is the monthly contractual base rent as of September 30, 2001 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.
(2): The weighting of the lease term was computed using Total Rental Revenue.
(3): Many of our government leases are subject to early termination provisions which are customary to government leases. The weighted average remaining lease term was computed assuming no exercise of such early termination rights.
(4): Includes affiliated organizations or agencies.
(5): AT&T Local Services subleases 173,072 square feet under 2 leases which expire March 30, 2002. Effective April 1, 2002, this same 173,072 square feet will become directly leased by AT&T Local Services with expiration dates ranging from 2006 through 2009. The above weighted average lease term reflects the expiration date of these direct leases.
(6): Merck & Co., Inc. subleases 219,065 rentable square feet from Unisys' 960,349 leased rentable square feet.

Total Rental Revenue by Geographic Region by Quarter(1)

(Dollars in thousands)

		2001						2000
		September 30		June 30		March 31		December 31		September 30
Office Properties:
Greater Philadelphia		$	2,506	$	2,506	$	2,506	$	2,506	$	2,506
Baltimore/Washington Corridor			22,558		18,654		18,573		17,224		17,197
Northern/Central New Jersey			4,757		4,998		4,922		5,311		5,326
Greater Harrisburg			2,174		2,483		2,789		2,271		2,228

	Total Office Properties		31,995		28,641		28,790		27,312		27,257

Retail Properties:
	Total Retail Properties		—		—		—		72		261

Total Regional Rental Revenue		$	31,995	$	28,641	$	28,790	$	27,384	$	27,518

(1): Rental revenue represents GAAP revenue including operating expense reimbursements, straight line rent adjustments and tenant services income.

Net Operating Income by Geographic Region by Quarter

(Dollars in thousands)

			2001						2000
			September 30		June 30		March 31		December 31		September 30
Office Properties:
Greater Philadelphia			$	2,476	$	2,469	$	2,486	$	2,481	$	2,482
Baltimore/Washington Corridor				15,539		12,704		12,614		11,571		11,664
Northern/Central New Jersey				2,819		3,173		3,028		3,418		3,458
Greater Harrisburg				1,506		1,736		2,195		1,718		1,683

	Total Office Properties			22,340		20,082		20,323		19,188		19,287

Retail Properties:
	Total Retail Properties			—		—		—		55		179

		Total Regional NOI	$	22,340	$	20,082	$	20,323	$	19,243	$	19,466

Other income/expenses, net				54		71		62		226		140

		Total NOI	$	22,394	$	20,153	$	20,385	$	19,469	$	19,606

Same Office Property Cash Net Operating Income by Quarter(1)

(Dollars in thousands)

	2001						2000
	September 30		June 30		March 31		December 31		September 30
Office Properties:(2)
Greater Philadelphia	$	2,408	$	2,364	$	2,363	$	2,363	$	2,361
Baltimore/Washington Corridor		11,477		11,122		11,215		11,100		10,302
Northern/Central New Jersey		2,779		2,845		2,665		2,889		2,849
Greater Harrisburg		1,446		1,668		1,682		1,651		1,654

Total Office Properties	$	18,110	$	17,999	$	17,925	$	18,003	$	17,166

Same Office Property GAAP Net Operating Income by Quarter(1)

(Dollars in thousands)

		2001						2000
		September 30		June 30		March 31		December 31		September 30
Office Properties:(2)
Greater Philadelphia		$	2,495	$	2,497	$	2,497	$	2,497	$	2,495
Baltimore/Washington Corridor			11,560		11,348		11,501		11,470		11,741
Northern/Central New Jersey			2,854		2,939		2,756		3,059		2,920
Greater Harrisburg			1,454		1,696		1,714		1,688		1,691

	Total Office Properties	$	18,363	$	18,480	$	18,468	$	18,714	$	18,847

(1): Net operating income for same office properties has been presented on a GAAP basis and a modified cash basis which removes the effect of straight-line rents from the GAAP net operating income.
(2): Same office properties include buildings owned for a minimum of five reporting quarters.

Office Lease Expiration Analysis by Year

Year of Lease Expiration(1)	Number of Leases Expiring	Square Footage of Leases Expiring	Percentage of Total Occupied Square Feet		Total Rental Revenue of Expiring Leases(2)		Percentage of Total Rental Revenue Expiring		Total Rental Revenue of Expiring Leases per Occupied Square Foot
					($000s)
2001	34	354,593	5.0	%	$	5,635	4.6	%	$	15.89
2002	89	977,541	13.8	%		17,093	13.9	%		17.49
2003	91	779,614	11.0	%		14,699	12.0	%		18.85
2004	63	710,704	10.0	%		13,607	11.1	%		19.15
2005	65	731,830	10.3	%		14,295	11.6	%		19.53
2006	47	571,308	8.1	%		10,684	8.7	%		18.70
2007	11	398,239	5.6	%		6,377	5.2	%		16.01
2008	11	767,559	10.8	%		14,238	11.6	%		18.55
2009	13	1,222,057	17.2	%		14,736	12.0	%		12.06
2010	11	465,859	6.6	%		9,476	7.7	%		20.34
2011	2	117,585	1.7	%		2,156	1.8	%		18.34

Total/Weighted Average	437	7,096,889	100.0	%	$	122,996	100.0	%	$	17.73

NOTE: As of September 30, 2001, the weighted average lease term is 4.4 years.

(1): Many of our government leases are subject to certain early termination provisions which are customary to government leases. The year of lease expiration was computed assuming no exercise of such early termination rights.
(2): Total Rental Revenue is the monthly contractual base rent as of September 30, 2001 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.

Year to Date Office Renewal Analysis

		Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
For Nine Months Ended September 30, 2001:
	Expiring Square Feet		—			437,669			31,965			147,268			616,902
	Vacated Square Feet		—			140,167			6,050			33,026			179,243
	Renewed Square Feet		—			297,502			25,915			114,242			437,659
	Retention Rate (% based upon square feet)		0.00	%		67.97	%		81.07	%		77.57	%		70.94	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		20.71	%		34.51	%		6.48	%		19.56	%
	Increase in Total Rent—Straight-line		0.00	%		17.12	%		28.20	%		5.45	%		16.00	%
	Increase in Base Rent—Cash		0.00	%		14.84	%		30.38	%		2.97	%		14.19	%
	Increase in Total Rent—Cash		0.00	%		11.85	%		24.51	%		2.54	%		11.25	%
	Average Capital Cost per Square Foot	$	—		$	5.81		$	12.24		$	1.94		$	5.49

Quarterly Office Renewal Analysis

		Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
Quarter Ended September 30, 2001:
	Expiring Square Feet		—			182,914			7,777			97,943			288,634
	Vacated Square Feet		—			122,030			—			—			122,030
	Renewed Square Feet		—			60,884			7,777			97,943			166,604
	Retention Rate (% based upon square feet)		0.00	%		33.29	%		100.00	%		100.00	%		57.72	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		13.01	%		25.29	%		8.18	%		11.93	%
	Increase in Total Rent—Straight-line		0.00	%		10.17	%		15.05	%		6.47	%		9.07	%
	Increase in Base Rent—Cash		0.00	%		8.22	%		18.70	%		5.90	%		7.87	%
	Increase in Total Rent—Cash		0.00	%		5.76	%		9.46	%		4.64	%		5.51	%
	Average Capital Cost per Square Foot	$	—		$	7.34		$	5.67		$	0.95		$	4.40
Quarter Ended June 30, 2001:
	Expiring Square Feet		—			174,078			22,678			45,325			242,081
	Vacated Square Feet		—			16,922			6,050			33,026			55,998
	Renewed Square Feet		—			157,156			16,628			12,299			186,083
	Retention Rate (% based upon square feet)		0.00	%		90.28	%		73.32	%		27.14	%		76.87	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		24.86	%		38.02	%		13.69	%		26.15	%
	Increase in Total Rent—Straight-line		0.00	%		19.76	%		32.98	%		10.21	%		21.02	%
	Increase in Base Rent—Cash		0.00	%		19.81	%		34.23	%		4.57	%		21.00	%
	Increase in Total Rent—Cash		0.00	%		15.52	%		29.50	%		2.37	%		16.63	%
	Average Capital Cost per Square Foot	$	—		$	3.87		$	14.05		$	6.50		$	5.58

Quarterly Office Renewal Analysis (continued)

		Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
Quarter Ended March 31, 2001:
	Expiring Square Feet		—			80,677			1,510			4,000			86,187
	Vacated Square Feet		—			1,215			—			—			1,215
	Renewed Square Feet		—			79,462			1,510			4,000			84,972
	Retention Rate (% based upon square feet)		0.00	%		98.49	%		100.00	%		100.00	%		98.59	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		23.01	%		2.78	%		-28.63	%		20.44	%
	Increase in Total Rent—Straight-line		0.00	%		20.31	%		2.03	%		-18.63	%		18.20	%
	Increase in Base Rent—Cash		0.00	%		15.15	%		2.78	%		-30.74	%		12.95	%
	Increase in Total Rent—Cash		0.00	%		12.84	%		2.03	%		-20.55	%		11.12	%
	Average Capital Cost per Square Foot	$	—		$	7.20		$	0.42		$	1.70		$	6.88
Quarter Ended December 31, 2000:
	Expiring Square Feet		—			75,372			3,174			6,623			85,169
	Vacated Square Feet		—			29,132			—			—			29,132
	Renewed Square Feet		—			46,240			3,174			6,623			56,037
	Retention Rate (% based upon square feet)		0.00	%		61.35	%		100.00	%		100.00	%		65.80	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		24.55	%		21.47	%		-17.49	%		17.74	%
	Increase in Total Rent—Straight-line		0.00	%		15.08	%		11.19	%		-9.98	%		10.57	%
	Increase in Base Rent—Cash		0.00	%		18.45	%		20.00	%		-18.85	%		13.19	%
	Increase in Total Rent—Cash		0.00	%		9.73	%		10.01	%		-11.15	%		6.66	%
	Average Capital Cost per Square Foot	$	—		$	10.27		$	17.92		$	1.10		$	9.72
Quarter Ended September 30, 2000:
	Expiring Square Feet		—			186,061			116,771			6,757			309,589
	Vacated Square Feet		—			50,043			40,094			6,757			96,894
	Renewed Square Feet		—			136,018			76,677			—			212,695
	Retention Rate (% based upon square feet)		0.00	%		73.10	%		65.66	%		0.00	%		68.70	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		6.31	%		32.53	%		0.00	%		14.75	%
	Increase in Total Rent—Straight-line		0.00	%		4.24	%		20.06	%		0.00	%		9.74	%
	Increase in Base Rent—Cash		0.00	%		3.45	%		13.01	%		0.00	%		6.52	%
	Increase in Total Rent—Cash		0.00	%		1.44	%		2.97	%		0.00	%		1.97	%
	Average Capital Cost per Square Foot	$	—		$	5.32		$	27.35		$	—		$	12.57

Acquisition Summary as of September 30, 2001

(Dollars in Thousands)

Wholly Owned Portfolio		Submarket	Acquisition Date	Square Feet	Occupied Sq. Ft. at Acquisition	Occupancy Percentage at Acquisition		September 30, 2001 Occupancy Percentage		Investment(1)
6700 Alexander Bell Drive(2)		Howard County Perimeter	5/14/2001	75,635	75,635	100.0	%	100.0	%	$	8,774
6708 Alexander Bell Drive(2)		Howard County Perimeter	5/14/2001	35,040	35,040	100.0	%	100.0	%		4,485
920 Elkridge Landing Road(3)		BWI Airport	7/2/2001	96,566	96,566	100.0	%	100.0	%		11,010
938 Elkridge Landing Road(3)		BWI Airport	7/2/2001	52,988	52,988	100.0	%	100.0	%		5,987
940 Elkridge Landing Road(3)		BWI Airport	7/2/2001	51,704	51,704	100.0	%	100.0	%		4,925
891 Elkridge Landing Road(3)		BWI Airport	7/2/2001	56,489	56,489	100.0	%	86.3	%		6,177
901 Elkridge Landing Road(3)		BWI Airport	7/2/2001	56,847	50,155	88.2	%	86.0	%		5,738
870-880 Elkridge Landing Road		BWI Airport	8/3/2001	97,161	97,161	100.0	%	100.0	%		11,465
7061 Columbia Gateway Drive		Howard County Perimeter	8/30/2001	29,604	29,604	100.0	%	100.0	%		4,130
7063 Columbia Gateway Drive		Howard County Perimeter	8/30/2001	36,936	36,936	100.0	%	100.0	%		5,171
7065 Columbia Gateway Drive		Howard County Perimeter	8/30/2001	38,560	38,560	100.0	%	100.0	%		5,398
7067 Columbia Gateway Drive		Howard County Perimeter	8/30/2001	82,032	82,032	100.0	%	100.0	%		9,128

	Total			709,562	702,870	99.1	%	97.8	%	$	82,388

(1): Initial investment recorded by property as of September 30, 2001 for asset purchase.
(2): In conjunction with these operating properties, we also purchased a 30,855 square foot property to be redeveloped.
(3): We held a 40% ownership interest in these office properties through a joint venture agreement from March 21, 2001 through July 1, 2001. Effective July 2, 2001, we acquired the remaining 60% ownership for $6.9 million.

NOTE: COPT classifies its acquisitions by type—entity, portfolio or individual acquisitions. Entity acquisitions are defined as mergers of significant portfolios of $100 + million with strong management organizations and a regional presence.

Disposition Summary as of September 30, 2001

(Dollars in Thousands)

Individual Property		Submarket		Disposition Date		Square Feet		Gross Sales Proceeds			Debt Assumption or Repayment			Cash Proceeds After Debt Repayment
19 Commerce		Cranbury, NJ		6/18/2001		65,277		$	11,525		$	7,000		$	4,525

Development Summary as of September 30, 2001

(Dollars in Thousands except per square foot data)

Property and Location			Submarket	Owned or Joint Venture (JV)	Rentable Square Feet	Percentage Pre-Leased or Committed		Anticipated Cost per Rentable Square Foot		Anticipated Cost		Cost to date		Anticipated Stabilization/ Delivery
Under Construction
	2701 Phoenix Road (201 NBP)(1) Annapolis Junction, MD		BWI Airport	JV	56,750	52.41	%	$	155	$	8,807	$	8,329	January 2002
	114 National Business Parkway Annapolis Junction, MD		BWI Airport	Owned	10,000	100.00	%		164		1,644		1,050	February 2002
	6724 Alexander Bell Drive(2) Columbia, Maryland		Howard County Perimeter	Owned	30,855	0.00	%		157		4,835		2,586	March 2002
	4260 Forbes Boulevard—Phase I(3) Laurel, Maryland		Lanham	JV	54,692	43.08	%		101		5,505		4,882	April 2002
	Robert Fulton Drive—Phase IA(4) Columbia, Maryland		Howard County Perimeter	JV	115,850	0.00	%		116		13,406		7,966	June 2002
	2711 Phoenix Road (211 NBP)(5) Annapolis Junction, MD		BWI Airport	JV	150,000	100.00	%		174		26,135		14,577	June 2002
	6731 Columbia Gateway Drive(6) Columbia, Maryland		Howard County Perimeter	Owned	122,889	0.00	%		176		21,613		16,818	September 2002
	1304 Concourse Drive(7) Linthicum, MD		BWI Airport	Owned	100,000	0.00	%		166		16,572		12,001	September 2002

		TOTAL / AVERAGE			641,036	33.27	%	$	154	$	98,517	$	68,209

(1): On September 29, 2000, we contributed this development asset into a joint venture. The joint venture obtained a $13,725 construction loan in October 2000 and $9,587 is outstanding as of September 30, 2001. The 56,750 square feet reflected above represents the remaining development portion as 61,250 square feet was delivered and placed into service in September 2001.
(2): We purchased this property in May 2001 and are redeveloping.
(3): We participate in the development of this asset through a joint venture arrangement. The joint venture has obtained a $9,026 construction loan (to fund Phase I and II) and has borrowed $3,726 as of September 30, 2001.
(4): We participate in the development of this asset through a joint venture arrangement. The joint venture has obtained a $14,000 construction loan (to fund Phase IA and Phase IB) and has borrowed $4,611 as of September 30, 2001.
(5): On December 15, 2000, we contributed this development asset into a joint venture. The joint venture has obtained a $20,550 construction loan and $5,945 is outstanding as of September 30, 2001.
(6): We obtained a $15,750 construction loan and $8,952 is outstanding as of September 30, 2001.
(7): We obtained an $11,855 construction loan and $6,900 is outstanding as of September 30, 2001.

QuickLinks

Corporate Office Properties Trust Index to Supplemental Information (Unaudited) September 30, 2001
Quarterly Selected Financial Summary Data (Dollars in thousands)
Quarterly Consolidated Balance Sheets (Dollars in thousands except per share data)
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO) (Dollars and units in thousands)
Quarterly Consolidated Statements of Operations and FFO per Diluted Share (Shares in thousands)
Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues
Quarterly Equity Analysis (Amounts in thousands, except per share data, share prices and ratios)
Quarterly Valuation Analysis (Dollars in thousands except per share data and ratios)
Quarterly Debt Analysis (Dollars in thousands)
Quarterly Operating Ratios (Dollars in thousands except per share data and ratios)
Quarterly Dividend Analysis
Investor Composition and Analyst Coverage (as of September 30, 2001)
Debt Maturity Schedule—September 30, 2001 (Dollars in thousands)
Property Summary by Region—September 30, 2001
Property Occupancy Rates by Region by Quarter
Top Twenty Office Tenants as of September 30, 2001 (Dollars and Square Feet in thousands)
Total Rental Revenue by Geographic Region by Quarter(1) (Dollars in thousands)
Net Operating Income by Geographic Region by Quarter (Dollars in thousands)
Same Office Property Cash Net Operating Income by Quarter(1) (Dollars in thousands)
Same Office Property GAAP Net Operating Income by Quarter(1) (Dollars in thousands)
Office Lease Expiration Analysis by Year
Year to Date Office Renewal Analysis
Quarterly Office Renewal Analysis
Quarterly Office Renewal Analysis (continued)
Acquisition Summary as of September 30, 2001 (Dollars in Thousands)
Disposition Summary as of September 30, 2001 (Dollars in Thousands)
Development Summary as of September 30, 2001 (Dollars in Thousands except per square foot data)